The role, skills and responsibilities of CIOs in Multinational Corporations The Role of ICT in...

The role, skills and responsibilities of CIOs in

Multinational Corporations

The Role of ICT in Globalization and Development of Network Society

Network Society Research Center

Seminar - 2005/06/07

Bertrand Leneveu

Contents

I. Introduction

II. The roles and the responsibilities of a CIO

III. The type of person and the skills required for a CIOa. Technical skills

b. Planning, managing skills and leader ship

c. Business leaership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Background

b. Cisco Systems’ strategy

c. Cisco Systems’ CIO’s roles and attributes

d. Conclusion

Introduction

• CIO: Chief Information Officer

• A rather new kind of job with an increasing demand

• Concerns big enterprises as well as medium-sized companies

• A complex role which has to be explained and clarified

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

The roles and responsibilities of a CIO

• In the past years the roles and responsibilities of the CIOs have been ambiguous

• The role of the CIO is changing in profound ways as IT and the business become impossible to separate

• Now, CIOs must take the lead in interpreting the emerging digital economy

Leaders with good communication skills

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

http://www.cio.com/archive/100104/hs_verdict.html

The roles and responsibilities of a CIO

A CIO should be ...

• A leader : - good information sharing - resource management - vendor management - contract negotiation

• An information resource : - collecting and distributing information - looking for new developments - watching what competitors are doing - value information for business strategy, developing plans, and business process

Business strategies

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

The roles and responsibilities of a CIO

• An IT marketplace interpreter : - Helps senior executives understand the potential impacts of market events on the company • A business strategist : - develop a long-range of actions to align with the organization vision - identify and exploits opportunity for new products, services, and markets - change challenge May bring change or even revolution for the whole organization

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

The roles and responsibilities of a CIO

• A technologist : - make decisions about what IT capabilities the

organisation needs - architect capabilities - find out the relationship between new

technique and the business goals

• Tomorrow’s CIO may be more involved in decision making

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

http://www.01net.com/article/218483.html

The type of person and the skills required for a CIO

Technical skills

• Strong technical background

• Predominant skill during the 90’s

• As important as others skills now

• Be aware of last researches

• IT changes a lot

• Proactive skills to foresee the future in IT

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and

the skills required for a CIO

a. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

http://www.optimizemag.com/article/showArticle.jhtml?articleId=53701400&pgno=1

The type of person and the skills required for a CIO

Planning, managing skills and leadership

• Plan projects– Respect the delay– Do not exceed the budget

• Teamwork

• Negotiation skills– Example 1 : argument between 2 employees– Example 2 : convince the business unit

• Team leader– The whole team must be satisfied– Manage the department

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and

the skills required for a CIO

a. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

The type of person and the skills required for a CIO

Business leadership

• CIOs interfere with other departments

• Know the firm very well

• Negotiate IT projects with counterparts

• Weigh the pros and cons for each solution

• Example: information security

CIOs need to understand the business level

Must develop a business leadership

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and

the skills required for a CIO

a. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

Criteria for a successful CIO

• No miraculous recipe

• Nevertheless, the successful CIO:

– Has a strong knowledge in IT

– Takes care of the environment (financial, human…)

– Is charismatic and pragmatic, being strict but using compromise

– Takes the initiative and risks

– Has a strong sense of organization

– Has a multicultural background

– Has the full support of his hierarchy

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

A Study Case: Cisco Systems

Background

• American based company

• Hardware embedded software• Internal networks

• Leader in manufacturing equipment for all kinds of communications– Voice– Data– Video

• ‘One stop shop’ for an organization’s entire network infrastructure.

• Sells to over 100 countries

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

A Study Case: Cisco Systems

IT Strategy

• Goal: make it easy to do business with the company.

• 3 strategic decisions:– Focus IT on customers:

• IT moves from CFO to Customer Advocacy (takes care of all customer touching services & products).

• Projects which don’t raise customer satisfaction aren’t funded.

– Managers of business units (BU’s) decide WHICH applications to build -> IT decides HOW.

– Creation of an enterprise-wide network & standards. BUs do not have to justify infrastructure investments.

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

A Study Case: Cisco Systems

CIO’s roles and attributes

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

A Study Case: Cisco Systems

CIO’s roles and attributes

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

• Peter Solvik, CIO, has to coordinate efforts in BUs to achieve a company wide information system.

• Advantages:– Centrally managed infrastructure investment– Extensive functional management team

involvement in IT.– CIO measures only if the infrastructure costs

will add more value to the product/service sold/provided.

A Study Case: Cisco Systems

CIO’s roles and attributes

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

• Qualities the CIO must have:– Leadership– Management– Business planning– Technical savvy

• ‘Net ready’ company qualities– Leadership– Governance – Competencies– Technology

A Study Case: Cisco Systems

CIO’s roles and attributes

I. IntroductionII. The roles and the

responsibilities of a CIOIII. The type of person and the

skills required for a CIOa. Technical skillsb. Planning, managing

skills and leader shipc. Business leadership

IV. Criteria for a successful CIO

V. Recommandations in managing IT in MNCSA study case: Cisco Systems

a. Backgroundb. Cisco Systems’ strategyc. Cisco Systems’ CIO’s

roles and attributesd. Conclusion

• Conclusion:

– Widely successful strategy, personified by their CIO.

– 80% of business done on-line

– $550 million profit increase in last 5 years

– Raised customer satisfaction by 25%

– Savings of $250 million through the use of the enterprise wide network.

Further reading

• Jerry N. Luftman, “Managing the Information Technology Resource: Leadership in the information age.”, Prentice Hall 2004

• Hartman, Amir & Sifonis, John & Kador, John Net, “Ready strategies for success in the E-conomy”, McGraw-Hill [Computer file edition] 2000

• http://www.cio.com/

• http://www.itworld.com/

Thank you for your attention!

Questions?